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Employer’s Handbook Created Contract Despite Disclaimer

April 27, 2021


The Minnesota Supreme Court affirmed that contract disclaimer provisions in a handbook did not allow an employer to refuse to pay a former employee paid time off (PTO) leave accrued in accordance with its handbook.

In 2017, the city of Plainview, Minn., terminated the plaintiff from his position as manager of its municipal liquor store. At the time of his termination, the plaintiff had accumulated 1,778 hours of unused PTO.

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